Dubai (January 13, 2016) – Emerson (NYSE: EMR) and Carbon Holdings, the privately owned Egyptian petrochemical firm, today announced that Emerson Process Management has been selected to provide automation and reliability technologies and services for Carbon Holdings’ Tahrir Petrochemicals Project at Ain Sokhna, Egypt. Emerson’s initial scope of work is estimated at $150 million.
When completed, the approximately $6.9 billion Tahrir project will be the largest petrochemical plant in Egypt and the largest naphtha cracker plant in the world. It will produce 1.5 million metric tons per year of ethylene that will then be further processed into polyethylene. Other major products will include propylene, polypropylene, hexene, butadiene, benzene, and styrene. Construction and operation of the Tahrir Petrochemicals complex is expected to generate thousands of direct and indirect permanent and construction jobs in Egypt.
As Main Automation Contractor, Emerson will apply best practice technologies and services to help ensure the facility is completed on time and within budget. Engineering services include designing the plant for optimum availability, and Emerson will also provide a robust reliability program that includes consulting services, equipment health monitoring, and a reliability service center for ongoing local support and expertise.
The announcement was made at Emerson’s Middle East headquarters in Dubai where David Farr, chairman and CEO of Emerson, met with Basil El-Baz, chairman and CEO of Carbon Holdings, for the signing of a memorandum of understanding regarding the contract award.
“Investments of this size require us to select partners that have a long history of handling large, complex projects and the expertise to produce a reliable plant with dependable output,” said Carbon Holdings’ El-Baz. “We chose Emerson for its proven ability to deliver a successful automation project that results in an efficient, high-availability operation.”
Designed to serve both local and export markets, the Tahrir Petrochemicals complex will be constructed in Egypt’s Suez Special Economic Development Zone, with raw materials received and products shipped from the Gulf of Suez. Financing for the mega-project is expected to come from the export credit agencies of the United States, Korea, Italy and the Overseas Private Investment Corporation, as well as direct investors. Under the memorandum of understanding, Emerson will also make a preferred equity investment in Tahrir Petrochemicals.
“We are excited to help Carbon Holdings realize its vision of creating a world-class petrochemical complex that can be a catalyst for economic development in Egypt,” said Farr. “With Emerson’s technologies, experience, and expertise, Carbon Holdings has positioned itself for top quartile performance – not only in project execution, but ongoing operations as well.”
About Emerson Process Management
Emerson Process Management (www.EmersonProcess.com), an Emerson business, is a leader in helping businesses automate their production, processing and distribution in the chemical, oil and gas, refining, pulp and paper, power, water and wastewater treatment, mining and metals, food and beverage, life sciences and other industries. The company combines superior products and technology with industry-specific engineering, consulting, project management and maintenance services. Its brands include Bettis™, DeltaV™, Fisher™, Micro Motion™, Ovation™ and Rosemount™.
About Emerson
Emerson (NYSE: EMR), based in St. Louis, Missouri (USA), is a global leader in bringing technology and engineering together to provide innovative solutions for customers in industrial, commercial, and consumer markets around the world. The company is comprised of five business segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. Sales in fiscal 2015 were $22.3 billion. For more information, visit Emerson.com.
About Carbon Holdings
Carbon Holdings Limited is a privately owned, non-governmental petrochemicals company domiciled in Egypt and was formed for the purpose of making long-term controlling investments in the downstream oil and gas sector (in particular the fast-growing chemical and petrochemical sector) with the objective of becoming a leading owner and operator of integrated petrochemical plants with a primary focus on Egypt. The Company seeks to develop and acquire a diverse portfolio of value-added assets in the Middle East and North Africa (MENA) region that span across the petrochemicals value chain in order to optimize economies of scale. The Carbon Holdings teams' collective experiences put Carbon Holdings in an ideal position to take advantage of attractive global development and acquisition opportunities that provide a unique value-add to project shareholders. Among the Carbon Holdings’ team are key personnel who have successfully led growth in strategy and M&A for some of the largest multinational petrochemical conglomerates; and others who have been involved in assessing the feasibility of some of the largest global projects undertaken in the last 40 years (from a technical, financial, and execution standpoint). Carbon Holdings projects have succeeded in securing attractive debt funding from local banks, regional banks, international banks and Export Credit Agencies; and equity financing from strategic and regional investors.
